By: HUB's Absence Management Team

Overview

Effective January 3, 2028, the Maryland FAMLI program will provide most Maryland employees with up to 12 weeks of paid leave for qualifying family and medical reasons, with a possible additional 12 weeks for parental bonding within the same application year.

Contribution withholdings begin January 1, 2027. Employers should begin preparing now — determining whether a private or state plan is the right fit and reviewing current leave policies and programs.

Maryland FAMLI regulations have been finalized and can be found here.

Covered employers and employees

Employer Eligibility

Employers with one or more employees working in Maryland are required to participate in MD FAMLI.

Employee Eligibility

Any worker in Maryland who has worked 680 hours in the prior 12 months will be eligible when benefits become available starting January 3, 2028. Self-employed individuals may also participate.

Employee Threshold

680 hours worked in the prior four calendar quarters

Qualifying leave reasons

MD FAMLI covers the following leave purposes:

  • Employee's own serious health condition
  • Care of a family member with a serious health condition
  • Bonding with a new child (birth, adoption or foster placement)
  • Care for a service member with a serious health condition or qualifying exigency arising from the deployment of an employee's family member

Family member definition

For purposes of MD FAMLI, "family member" includes:

  • Spouse (includes domestic partner)
  • Child (including adopted, foster, step, in loco parentis and assumed parental roles)
  • Parent
  • Grandparent
  • Grandchild
  • Sibling

Plan design details

Elimination Period

Seven calendar days.

Maximum Duration

12 weeks within a rolling 12-month "benefit year." The benefit year starts on the Sunday before the employee's first day of leave and lasts 12 months from that date.

Exception: If an employee takes leave for their own health condition and welcomes a child in the same year, they may take up to 12 weeks per qualifying reason, for a combined total of up to 24 weeks.

Benefit Calculation

90% of a worker's average weekly wage up to 65% of the state average weekly wage (SAWW), plus 50% of the portion of wages exceeding 65% of the SAWW.

Benefit Range

2028 Weekly Minimum: $50 (expected) | 2028 Weekly Maximum: $1,000 (expected). Note: final benefit amounts are subject to change as rulemaking continues.

Intermittent Use

MD FAMLI may be taken intermittently in increments of at least four hours.

Job Protection

Yes — MD FAMLI protects the employee's job during FAMLI leave.

Benefit Continuation

Yes — employers must continue an employee's health benefits in the same manner as during FMLA leave.

Topping Off / Coordination

Employers may require employees to take employer-provided leave that also qualifies under MD FAMLI concurrently. Employers may allow employees to top off FAMLI benefits, provided the employee does not receive more than 100% of their normal weekly wage.

Contribution rates

The finalized contribution rate is 0.9% of wages, effective January 1, 2027 to December 31, 2027. This rate may be split equally (50/50) between employer and employee. Under current law, the total rate cannot exceed 1.2% of wages up to the Social Security cap.

Wage Base

Wages up to the Social Security wage cap.

Employer/Employee Split

Employers may withhold up to 50% of contributions from employees' pay. Small employers (fewer than 15 total employees, counting all employees within and outside of Maryland) are only responsible for remitting 50% of the total contribution due — which may be withheld entirely from employee wages.

Rate-Setting

MD Labor will announce the contribution rate for each subsequent year each November, starting in 2027. The rate for 2026 is set and will be announced by May 1, 2026.

Coverage options

Employers have two options for providing MD FAMLI coverage:

Option

Description

State Plan

MD FAMLI will be administered and payments issued by the MD Department of Labor's Family and Medical Leave Insurance Division. Employers in the state plan are not charged more based on employee usage.

Private Plan

Employers may apply for an exemption by enrolling in a private plan — either fully insured through a carrier or self-insured. A private plan must fully meet or exceed the state plan and be approved by the Maryland FAMLI Division. Private plans may be structured differently from the state plan regarding how rates are set.

Employers wishing to offer a private plan must submit a Declaration of Intent (DOI) between September 1 and November 15, 2026. Private plan applications may then be submitted in 2027.

Employees cannot be charged more in a private plan than they would be under the state plan.

Notice requirements

Using the FAMLI Division-mandated notice template, employers must provide notice:

  • Starting July 2027, six months before commencement of benefits
  • At hire
  • Annually
  • 30 days before any changes to the employer's FAMLI procedures or plan
  • Upon knowledge of an employee's potential need for FAMLI leave
  • One pay period prior to the start of contribution withholdings and before any subsequent changes

Employees must provide 30 days' advance notice of foreseeable leave or as soon as practicable for unforeseeable leave.

Key dates and next steps

Date

Milestone

Sept. 1 to Nov. 15, 2026

Window to submit Declaration of Intent for private plan consideration.

December 2026

Employers will need to notify employees in writing one pay period before deductions begin.

January 1, 2027

Payroll contributions begin.

April 2027

First payroll reports due.

2027 (November)

MD Labor announces 2028 contribution rate.

July 2027

Employer notice obligations begin for existing employees.

January 3, 2028

Benefits become available to eligible employees.

Recommended actions:

View more Absence Management updates on the Absence Management Bulletins page.

NOTICE OF DISCLAIMER
Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.